Cable takes another peek above 1.3700, can buyers break through this time?

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GBP/USD touches its highest levels since May 2018

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The pound is the standout performer on the session as cable climbs to a high of 1.3718 on the day, its highest levels since May 2018. The move here comes as the pound strengthens amid a breakdown in key technical support in EUR/GBP here.

As such, it is also pushing cable towards a potential break of the 1.3700 handle – a level which has limited upside momentum in recent weeks.

A breach above 1.3700 will leave little else in the way of a potential jump towards 1.4000 next, at least from a technical perspective.

The better inflation data today won’t stoke the BOE flames whatsoever for now and the market doesn’t seem too hurried to price in any further easing by the central bank.

As such, the headwinds for the pound are still rather contained.

Sure, there are still bleaker prospects surrounding a post-Brexit economy. However, the virus crisis will mask most of that for the time being and with the virus situation showing some signs of improvement as of late, that’s encouraging amid the vaccine rollout.

If the break in EUR/GBP holds, that will provide added impetus from the technical side of things for cable to also go in search of a move towards 1.4000 next perhaps.

This article was originally published by Forexlive.com. Read the original article here.